China Investing in Nuclear Power
Uranium prices have experienced the biggest drop in two years recently, but this may be coming to an end with news of India and China investing heavily in atomic power developments that will more than double global production of nuclear power. Prices for the radioactive metal tumbled as much as 27% in the wake of the Fukushima nuclear power plant crisis in Japan.
However, this has not deterred China and India from leading an estimated 46% increase in consumption by 2020. Soaring energy demand from the world's fastest-growing economies is boosting the prospects of miners such as Cameco Corp and Paladin Energy Inc. According to some experts in the field, the new generation of reactors that will be built in these countries are much safer then older reactors like Fukushima. For China, the decision is clear because they simply cannot satisfy the growth in electricity demand in a singe dimension and must pursue a diverse range of sources.